Correlation Between Eaton Vance and Phenixfin
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Phenixfin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eaton Vance and Phenixfin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Phenixfin, you can compare the effects of market volatilities on Eaton Vance and Phenixfin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eaton Vance with a short position of Phenixfin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Phenixfin.
Diversification Opportunities for Eaton Vance and Phenixfin
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and Phenixfin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Phenixfin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phenixfin and Eaton Vance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eaton Vance National are associated (or correlated) with Phenixfin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phenixfin has no effect on the direction of Eaton Vance i.e., Eaton Vance and Phenixfin go up and down completely randomly.
Pair Corralation between Eaton Vance and Phenixfin
Considering the 90-day investment horizon Eaton Vance is expected to generate 247.61 times less return on investment than Phenixfin. But when comparing it to its historical volatility, Eaton Vance National is 289.37 times less risky than Phenixfin. It trades about 0.14 of its potential returns per unit of risk. Phenixfin is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,500 in Phenixfin on September 2, 2024 and sell it today you would earn a total of 225.00 from holding Phenixfin or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.27% |
| Values | Daily Returns |
Eaton Vance National vs. Phenixfin
Performance |
| Timeline |
| Eaton Vance National |
| Phenixfin |
Eaton Vance and Phenixfin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Phenixfin
The main advantage of trading using opposite Eaton Vance and Phenixfin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Phenixfin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Phenixfin will offset losses from the drop in Phenixfin's long position.| Eaton Vance vs. Visa Class A | Eaton Vance vs. Diamond Hill Investment | Eaton Vance vs. Distoken Acquisition | Eaton Vance vs. Associated Capital Group |
| Phenixfin vs. MFS Investment Grade | Phenixfin vs. Eaton Vance National | Phenixfin vs. Invesco High Income | Phenixfin vs. Federated Premier Municipal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |